ACA: Trying to Teach the Bleedingly Obvious to the Australian Consumer

The first thing I did after reading this article on Australians' responses to a survey by NAB of 500 credit card holders was check the back of our most recent shopping docket.

All I can say is that the bank must be rubbing its hands in glee at having so many stupid people in possession of a credit card.

The survey asked people how they would go about saving $150. Simple question. Many respondents said they would use shop-a-dockets to save money, hence why I had a quick look at the back of our most recent docket. Here's what I found:

Rabbit Photo: 'Digital prints for 39c- buy one get one free (min. order 50 prints) *Gold Members Only'.

Now, the question to ask yourself when you are trying to save money is "Do I really need those 50 photos? That's $19.50, plus whatever 'Gold membership' costs, of course". In summary, unless you've just been to your own wedding, those 50 prints are hardly likely to be an essential expense. Just put the photos on the web and email the URL to your friends.

Oz Tan: 'Free Suntanning: Buy 4 sessions and receive another 2 free; Also 20% off all beauty services over $30'.

Solarium tanning: not essential. Getting a facial: not essential. You might be saving a small amount of money by using the shop-a-docket if you do go to a solarium 2-3 times a week, but guess what? You save much more money if you just don't go! No-one cares if you're not quite as 'sun-kissed' this week, darling.

The Coffee Club: 'Free Meal: Buy one main meal and get one free with any 2 drinks purchased (not valid on Public Holidays)'.

If you were planning on eating at the Coffee Club with a friend (and some people like the generic, trucked-in-by-catering-company food at Coffee Club) this is a good deal. It's pretty rare for eating out to be an essential expense, but unless you're a rich wanker who'll spend $100 on a main course at an over-hyped restaurant you can probably justify the expense for the convenience of eating out. Plus you'll save 12c on a dishwasher tab!

www.shop-a-holiday.com.au: '3 Night Break Surfers Paradise Only $199 per person'.

That's spending $199, not saving $150. Besides, no matter how much you spend on a holiday at the Gold Coast, it's too much. Ugh.

www.shop-a-holiday.com.au: '4 night Escape Gold Coast $209'.

Ditto.

balAnce hair & beauty: 'Free stylecut with any colour, value $50'.

Nope. One thing the article mentioned is that respondents were rather reluctant to dye their hair at home rather than have it done by a salon. I've done both, and the salon does a better job, but that fails to take into account that unless you're grey at 30, having your hair dyed is completely non-essential. I used to read womens' magazines. I used to pretty much think that dying your hair was essential (alright, if you'd asked me I wouldn't have said so, but I still did it regularly)- and if you read the magazines, they'll also have you believe that your hair needs to change according to the season, or what's in fashion, or what some celebrity has done with her hair. I'm no advocate of letting your hair grow like a hippy (as scruffy as I look in my profile photo), but women are conditioned to believe that what they have is not good enough, and if only they fork out for product X their hair/face/body/whatever will become acceptable. Not true. Most women are just fine as they are. Spending $100+ every time you get your hair done is completely unnecessary. Just a cut should do, and it's not likely to cost more than $40-50 unless it's a particularly wanky salon... Been there, done that!

Video Ezy: 'Rent any New Release for only $1.95; rent 5 Weekly movies $6.95'.

Technically, videos are non-essential, but if you want a little entertainment, spending $1.95 is a whole lot better than the $14 per person it'll cost you to see a movie in a mainstream cinema.

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Many respondents also said that switching to a low-interest credit card would be a good way to save $150. The spokesperson for the Australian Consumers Association, Lisa Tait, agreed. The way I see it, however, if you're paying interest on a credit card, you aren't saving money, you're spending it. People like Gam and I, who pay off the credit card in time every month, are known as 'deadbeats' in banking terminology, apparently.

Another thing that struck me was how reluctant respondents were to use public transport and use their car less, particularly with the way petrol prices are at the moment. I guess the quality of public transport varies from city to city, and it is practically non-existent outside of cities, but making less use of the car seems to me to be a very good way to save money. I guess it's another case of what becomes the norm then becomes seen as essential, just as in the case of women's hair. A bike is a much better mode of transport than a car, if you are not subject to long commutes, and if you are, a motorbike or scooter is cheaper and much more environmentally friendly; even car-pooling is an option. Most people who drive are using the vehicle to transport only themselves, which is highly inefficient.

The article pertinently mentions that "A separate study by the association has found that using a high-interest online savings account can earn $300 a year more on a $5000 deposit than an everyday bank account."

Possibly the best idea so far. In an ordinary bank account you're paying to keep the bloody thing open as well as to use it, while getting $0.01 interest per quarter if you're lucky. AMP and ING both offer rates of around 5% on their savings accounts.